Image

Raising the Bar

Focused Improvements for Cannabis Industry Success

Author: Katherine Pretorius


As the cannabis industry transitions from the shadows of illegality to the bright lights of mainstream commerce, it's clear that a significant evolution is required. 

The industry, long associated with non-conformists and underground operations, now faces the challenge of meeting the expectations of a broader, more discerning public.

Image

Anthony Cohen is one of the pioneers of the go-to-market cannabis industry in South Africa. He is the CEO of Elixinol SA, which is seen as the gold standard in CBD Full Spectrum Extracts. Anthony helped create a legal framework for the industry in South Africa by founding the CTAA and CTAUK (Cannabis Trade Association Africa and United Kingdom). He is also the CEO of Whoomph and a new Premium Cannabis Club. In this article, he provides crucial insights into why and how the cannabis sector must enhance its efforts throughout the various sectors.

Image

Service: Enhancing Customer Relationships
The transition of cannabis into the mainstream market demands a paradigm shift in customer relationship management (CRM). "We need to engage with customers at a level they expect from other brands they trust," Cohen emphasises. This means adopting relationship marketing strategies and building brand awareness that aligns with professional standards. The industry must focus on creating reliable, consistent, and high-quality customer experiences like those provided by established brands in other sectors.

Media Representation: Changing Perceptions
One of the biggest hurdles the cannabis industry faces is changing public perception. Historically, cannabis has been associated with illegal activity and counterculture. Cohen points out, "The general public now requires a certain level of engagement from the industry." This involves professional and accurate communication about products and their effects. Mislabeling and misinformation, such as selling THC products labelled as CBD, not only harm consumers but also tarnish the industry's reputation. Accurate and transparent media representation is essential for building trust and credibility.

Image

Quality: Prioritising Excellence
Quality control is paramount. According to Anthony, "Focusing on quality over quantity is crucial." Consumers need access to high-quality products that are appropriately tested and accurately labelled. The prevalence of sub-par products and mislabeled edibles has led to negative consumer experiences and mistrust. The industry must standardise quality assurance processes and provide consumers access to test results, ensuring informed purchasing decisions.

Education: Informing and Empowering Consumers
Consumer education is another critical area. "Accessing the consumer is difficult because of the gateways that limit our product content," Cohen explains. Despite these challenges, it is vital to educate consumers about cannabis, its benefits, and its safe use. This includes correcting misinformation and providing clear, accurate information about different products and their effects. Effective consumer education will help dispel myths and foster a more informed and responsible cannabis community.

Image

Marketing: Strategic and Responsible Approaches
The cannabis industry must also refine its marketing strategies. "Advertising standards need to marry the product," says Anthony. This means moving away from selling ineffective products like isolates and instead promoting full-spectrum, tested, and verified products. To build a trustworthy brand image, marketing efforts should be transparent, responsible, and aligned with regulatory standards.

Cohesion: Uniting the Industry
Cohesion within the industry is essential for its growth and legitimacy. The Cannabis Trade Association Africa (CTAA) is working on creating industry standards, particularly for cannabis clubs. "We need to operate on similar models and be ratified with a set of attorneys who push to support that model," Cohen notes. This unity will help create a more standardised and reliable industry, fostering cooperation and shared goals among businesses and organisations.

Image

Legal Framework: Navigating and Advocating for Change
Navigating the legal landscape remains a complex issue. While significant strides have been made, such as the signing of the bill for private cannabis use and the movement of hemp to the Department of Agriculture, challenges remain. Cohen advocates for pushing advocacy groups to remove THC and CBD from specific regulatory schedules. This would allow the industry to operate in a more flexible and favourable regulatory environment, enabling further growth and innovation.

Conclusion
The cannabis industry stands at a critical juncture. To truly integrate into the mainstream, it must elevate its game across several key areas. As Anthony Cohen highlights, this involves enhancing service quality, improving media representation, ensuring product quality, educating consumers, adopting strategic marketing practices, fostering industry cohesion, and navigating the legal framework effectively.

By addressing these challenges head-on, the cannabis industry can build a sustainable, reputable, and prosperous future, meeting the needs and expectations of a growing and discerning consumer base.

Image